2. Different in nature. The deposit is the content of the deposit contract, which is the subordinate contract of the main contract, while the advance payment is the performance of the main contract.
3. The effect is different. If the contract can be performed normally, the deposit can be used to offset the price or returned according to the agreement of both parties, and the breach of contract is punitive. Prepayment is the price paid in advance.
4. Different payment methods. The deposit will be paid in one lump sum, and the deposit contract will not take effect until the deposit is paid in full. The advance payment can be paid in one lump sum or in installments.
Legal basis: Article 586 of the Civil Code of People's Republic of China (PRC), the parties may agree that one party shall pay a deposit to the other party as a guarantee for the creditor's rights. The deposit contract is established when the deposit is actually paid. The amount of the deposit shall be agreed by the parties; However, it shall not exceed 20% of the subject matter of the main contract, and the excess shall not have the effect of deposit. If the actual amount of deposit paid is more than or less than the agreed amount, it shall be deemed as a change of the agreed amount of deposit.